Case Study on Production and Cost

Running head: CASE STUDY ON PRODUCTION AND COST
Case Study on Production and Cost
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Name of the University:
Author Note:

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CASE STUDY ON PRODUCTION AND COST
Table of Contents
Answer 1....................................................................................................................................3
Answer 1.1.............................................................................................................................3
Answer 1.2.............................................................................................................................3
Answer 2....................................................................................................................................3
Answer 2.1.............................................................................................................................3
Answer 2.2.............................................................................................................................4
Answer 2.3.............................................................................................................................4
Answer 3....................................................................................................................................4
Answer 3.1.............................................................................................................................4
Answer 3.2.............................................................................................................................5
Answer 3.3.............................................................................................................................5
Answer 3.4.............................................................................................................................6
Answer 4....................................................................................................................................7
Answer 4.1.............................................................................................................................7
Answer 5....................................................................................................................................7
Answer 5.1.............................................................................................................................7
Answer 6....................................................................................................................................8
Answer 6.1.............................................................................................................................8
Answer 7....................................................................................................................................8
Answer 8....................................................................................................................................9
Answer 8..................................................................................................................................10

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CASE STUDY ON PRODUCTION AND COST
Reference..................................................................................................................................11

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CASE STUDY ON PRODUCTION AND COST
Answer 1
Answer 1.1
The production function:q=0.02 K0.5 L0.5
The solution for q=0.02 K0.5 L0.5
q2=0.022 K L
K= q2
0.022 L
Answer 1.2
The cost function can be written as below:
C=rK + wL
Answer 2
Answer 2.1
Required amount of K for q = 5 is ( 52
0.022 L )
Required amount of K for q = 10 is ( 102
0.022 L )
Required amount of K for q = 15 is ( 152
0.022 L )